It’s just a common sense. You can’t live by loans with such a high yield. If u grow fast everything will be covered, if u slow down trouble will be surfaced. I think they are doing the right thing to bring the risk down, but it’s just a start, u’ll feel the bump for quite a while.
Nu's CEO David is very long term focused. The business model is extremely scalable. The company has impressive efficiency compared to any digital banking. It is also very customer focused with a heavy focus on NPS.
I also had a chance to meet one of the technical founders of Hyperplane, the credit underwriting company Nu acquired. He told me that Nu's underwriting technology is second to none compared to any US digital bank he is aware of. Quite an impressive statement. So it also has world leading technology.
NIM & FX pressure are not going to have any fundamental impact on any of these mentioned above. It is just short term headwinds that will be gone over the long term.
I believe Nu will be a winner on the long term, in 10 years time we will look at this as a bump in the road. Management has shown it can steer the ship well in troubled waters. All great companies have had issues, the question is do they keep the company well run? I believe they will. Thanks for another great write up.
Thanks, Maarten. I appreciate the feedback. We learn more about the quality of management during challenging periods than we do when everything is rosy in the garden. I suspect that Nu's management will prove its class once again.
It’s just a common sense. You can’t live by loans with such a high yield. If u grow fast everything will be covered, if u slow down trouble will be surfaced. I think they are doing the right thing to bring the risk down, but it’s just a start, u’ll feel the bump for quite a while.
I don't quite understand your comment. Are you agreeing or disagreeing with the analysis?
I mean the company is de-risking, This’s the right move, but it would hurt margin for a while. We might see slower growth.
Agree, that’s what the analysis details.
Yup, for now I line $intr better.
Nu's CEO David is very long term focused. The business model is extremely scalable. The company has impressive efficiency compared to any digital banking. It is also very customer focused with a heavy focus on NPS.
I also had a chance to meet one of the technical founders of Hyperplane, the credit underwriting company Nu acquired. He told me that Nu's underwriting technology is second to none compared to any US digital bank he is aware of. Quite an impressive statement. So it also has world leading technology.
NIM & FX pressure are not going to have any fundamental impact on any of these mentioned above. It is just short term headwinds that will be gone over the long term.
I believe Nu will be a winner on the long term, in 10 years time we will look at this as a bump in the road. Management has shown it can steer the ship well in troubled waters. All great companies have had issues, the question is do they keep the company well run? I believe they will. Thanks for another great write up.
Thanks, Maarten. I appreciate the feedback. We learn more about the quality of management during challenging periods than we do when everything is rosy in the garden. I suspect that Nu's management will prove its class once again.